Good morning. Futures +95bps looking brighter than yesterday as Crude -3%. News overnight pointed to calming of US/Iran tensions. Yields down 2-4 bps across the curve.
In the US, Semis +2% while internet/software are flat. BE +5% leading the way higher following through on the Pelosi buy while memory (SNDK +4%) is following Asia up overnight. TMT Mo +3%
Asia mixed overnight: Asia. TPX +0.5%, NKY +0.5%, Hang Seng -0.02%, HSCEI -0.31%, SHCOMP +0.19%, Shenzhen +0.33%, Taiwan TAIEX +0.91%, Korea KOSPI +0.68%. Memory higher with Hynix +3% and Samsung +2%.
We get ZM and INTU earnings tonight. Let’s get straight to it…
AMD: Raymond James upgrades to Strong Buy, sees agentic AI driving new CPU growth leg
Raymond James upgrades AMD from Outperform to Strong Buy, arguing agentic AI creates a distinct CPU demand pool as agents increasingly handle orchestration, retrieval, databases, security and tool execution around each model call. RJ sees the server CPU market reaching ~$201B by CY30, including ~$85B of agentic CPUs and ~$83B of AI head-end CPUs, with AMD offering the best combination of direct earnings leverage, datacenter positioning and potential share gains. Its base case is broadly consistent with NVDA’s ~$200B CPU TAM framework and below AMD’s ~$220B view, leaving upside if agent adoption and accelerator deployments run stronger.